Proposed Closure of the Wyndeham Apple Site

Friday, June 03, 2011

Press release from the issuing company

LONDON – Wyndeham Group has today announced it is entering into a 30-day consultation process with the 80 staff employed at its Wyndeham Apple subsidiary with a proposal to conclude the process by 30 June 2011 resulting in the winding down of the web offset printing site from that date.

Wyndeham Apple operates three 64pp Uniset presses, four stitching lines and two perfect binders at three sites in Warrington.

The decision to close the facility has been triggered by the recent loss of two major contracts and difficulty in attracting new work without discounting prices. Printing of the Guardian's The Guide is moving to Polestar as part of a larger contract arrangement; and RTÉ, the Irish state-owned broadcaster, has decided to relocate the printing of its weekly television listings magazine, RTÉ Guide, to Ireland.

In the event that Wyndeham Apple closes, the intention would be to move the magazine portfolio of its largest client, Trader Media Group, publisher of Auto Trader, to the other web offset facilities within Wyndeham Group. Roy Kingston, Wyndeham Group's Chief Operating Officer, said: "Wyndeham Apple has provided a high quality and reliable service to its clients for many years. The loss of these titles has created substantial capacity at the company. Despite a considerable and concerted sales and marketing effort, we have been unable to secure sufficient replacement work within the time frame meaning that the business will start to generate unsustainable losses. We have considered alternative plans including downsizing the site but with a substantially reduced turnover level we just cannot make the necessary return."

Paul Utting, Wyndeham Group's Chief Executive Officer, said: "We are not prepared to reduce prices to levels which make our business unprofitable. Wyndeham Group's strategy is to offer a best-in-class service but at the same time ensure we, as a mission-critical supplier, make sufficient return on investment to secure our long-term future. We cannot reduce prices to retain or win turnover at a time when the industry is facing unprecedented increases in its input costs."